Detailed Answer
After a foreclosure sale in Illinois, the court clerk deposits any surplus proceeds under 735 ILCS 5/15-1505. You can file a petition to claim those funds. Follow these steps:
1. Verify Surplus Funds and Eligibility
Contact the circuit court clerk’s office in the county where the sale occurred. Request a report showing the sale date, sale price, and surplus amount. Confirm you qualify as an interested party—common examples include junior lienholders, former owners, or parties with a statutory right to funds.
2. Prepare the Petition
Draft a petition titled “Petition for Distribution of Surplus Funds.” Include:
- The foreclosure case caption and number
- Property address and legal description
- Sale date and surplus amount
- Your name, address, and interest in the funds
- A statement under oath asserting your right to the surplus
3. File the Petition
File the petition with the same circuit court. Pay the required filing fee. Ask the clerk to stamp a copy for your records. Illinois courts set these fees locally; verify current amounts with the clerk’s office.
4. Serve Notice on Interested Parties
Serve all known parties with a copy of the petition and a notice of hearing. Illinois Supreme Court Rule 11 governs service of process. Use certified mail, sheriff’s service, or a private process server.
5. Attend the Hearing and Obtain an Order
Appear at the scheduled hearing. Bring originals of any lien documents or title papers. Present your proof of interest. If no one objects, the judge will enter an order directing the clerk to distribute the funds.
6. Collect the Funds
After the court signs the order, return to the clerk’s office with a certified copy. Complete any clerk forms and present identification. The clerk will issue a check for the approved amount.
Helpful Hints
- Verify deadlines—file promptly after becoming aware of surplus.
- Keep track of all deadlines and service requirements under Illinois court rules.
- Obtain certified copies of court documents for your records.
- Consider consulting an attorney if multiple claimants contest the surplus.
- Maintain clear title documents to prove your interest.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney to discuss your specific situation.